Let’s say someone bought a building with a bank loan. If the landlord fails to pay the interest, the bank is forced to pay the principal. If the principal isn’t paid, the bank can put the building up for auction, even though the landlord owns it. Interest is the cost of borrowing money over time. The reason I can purchase a building without using my own money is that I can leverage time through interest. When we say time is money, it doesn’t just mean to save time and live diligently. It emphasizes that time truly represents money. - Joseph’s “just my thoughts”
The essence of money is ‘credit.’ When individuals with no credit possess a significant amount of money, they use it less efficiently than those with credit who have the same sum. This inefficiency incurs additional costs, resulting in lower profitability compared to someone who is trusted. In our world, even an equal amount of money is influenced by credit. The most fundamental step in establishing credit is to honor your verbal commitments. Individuals who do not fulfill their verbal promises tend to experience slower growth or may even fail, regardless of having an equivalent amount of money. - Joseph’s “just my thoughts”